Guided by the theoretic and practical research of the management of state-owned enterprise, as well as the experiences of foreign countries, this paper discussed the nature, functions and objectives of state-owned forest farm in term with the development course, and status of it, and characteristics of forest products and service as well. The basic nature of state-owned forest farm in China can be attributed to its dual properties_ the publicity nature to maximize the public benefits and the economic nature to maximize its profits. And its function should be de- fined as to make full advantage...